ICC panel: PDVSA owes ConocoPhillips $2 billion

ConocoPhillips has received confirmation through international arbitration that Petroleos de Venezuela SA owes it $2.04 billion as contractual compensation for Venezuelan properties nationalized in 2007.

The ruling by an International Chamber of Commerce tribunal applies to contracts ConocoPhillips had with PDVSA and two of its subsidiaries in the Hamaca and Petrozuata heavy crude oil projects expropriated by the government and to fiscal changes enacted before the nationalizations.

In a statement, ConocoPhillips said it “will pursue enforcement and seek financial recovery of its award to the full extent of the law.”

To account for the nationalizations, the company in 2007 took a noncash, pretax financial impairment of $4.588 billion.

The company also has won a ruling from a tribunal acting under auspices of the World Bank’s International Center for Settlement of Investment Disputes that expropriation of its assets violated international law.

The amount of compensation under that ruling will be determined by proceedings still in progress.